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H. Rept. 119-505 1 (2026-02-20)

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                     119TH CONGRESS                                          REPORT
                        2d Session   J HOUSE   OF  REPRESENTATIVES           119-505






                               MODERN WORKER EMPOWERMENT ACT



                     FEBRUARY 20, 2026.-Committed to the Committee of the Whole House on the State
                                       of the Union and ordered to be printed



                      Mr. WALBERG,   from  the Committee  on  Education  and Workforce,
                                           submitted  the following


                                              REPORT

                                                together with

                                             MINORITY VIEWS

                                             [To accompany H.R. 1319]

                       The  Committee   on Education   and Workforce,  to  whom   was  re-
                     ferred the bill (H.R. 1319) to amend  the Fair Labor  Standards  Act
                     of 1938 and  the National Labor  Relations  Act to clarify the stand-
                     ard for determining  whether  an individual is an employee,  and  for
                     other purposes,   having  considered  the  same,  reports  favorably
                     thereon  with  an  amendment and recommends that the bill as
                     amended  do pass.
                       The amendment is   as follows:
                       Strike out all after the enacting clause and  insert the following:
                     SECTION 1. SHORT TITLE.
                     This Act may be cited as the Modern Worker Empowerment Act.
                     SECTION 2. CRITERIA FOR DETERMINING EMPLOYEE STATUS.
                     Section 3(e) of the Fair Labor Standards Act of 1938 (29 U.S.C. 203(e)) is amend-
                     ed-
                          (1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (4), and
                        (5), respectively;
                          (2) in paragraph (1), by striking paragraphs (2), (3), and (4) and inserting
                        paragraphs (3), (4), and (5); and
                          (3) by inserting after paragraph (1) the following:
                      (2)(A) An individual shall be determined to be an independent contractor rather
                      than an employee of another person if-
                          (i) such other person does not exercise significant control over the details of
                        the way the work is performed by the individual, without regard to any control
                        the other person may exercise over the final result of the work performed; and
                          (ii) while performing such work, the individual has the opportunities and
                        risks inherent with entrepreneurship, such as the discretion to exercise mana-
                        gerial skill, business acumen, or professional judgment.


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